SILK MILL COSTS 



BY 

CLARENCE MUNRO DAY 

CERTIFIED PUBLIC ACCOUNTANT 
UNIVERSITY OF THE STATE OF NEW YORK 



1912 
CLARENCE M. DAY, C. P. A. 

152 MADISON STREET, BROOKYLN 

NEW YORK 



\ 






COPYRIGHT, 1912, BY 
CLARENCE M. DAY, C. P. A. 



PUBLISHED FEBRUARY, 1912 






-I 



THE •PLIMPTON'PRESS'NORWOOD -MASS 'U'S'A 



©CU314892 



INTRODUCTION 

To install a cost system in a silk mill is gen- 
erally considered a very difficult matter, and most 
proprietors regard it with apprehension. It is 
hard to understand why this is so, for the silk 
is valuable, and it requires very complete rec- 
ords in order to prevent loss by carelessness or 
theft. Where such records are made, the foun- 
dation of a cost system already exists, and the 
installation is simply a matter of arranging the 
general control of the various processes. 

This book is based upon a long experience 
in cost accounting, and the novel methods of 
computing the cost of making the warps and 
weaving the goods, have proven accurate and 
inexpensive in operation. They are simple and 
complete and will no doubt appeal to concerns 
that appreciate the need, because they can be 
adopted without disturbing the harmony of 
the mill. 

The book first presents a synopsis of the com- 
plete system, to enable you to comprehend its 
operation, and after giving a complete outline 
of the requirements, describes in detail the 
methods and submits the important forms to 
illustrate the work. 






TABLE OF CONTENTS 

CHAPTER PAGE 

I. OUTLINE OF THE SYSTEM 3 

Closing Periods 4 

Synopsis 5 

Requirements of the System .... 6 

Procedure to Commence 8 

II. WARP RECORD 10 

III. COMPUTING THE COST OF WARPS . . 14 

Value of Warp Used 17 

Summary of Warps on Hand . . . . 18 

Summary of Warps for Quarter ... 19 

Summary of Warps Used 19 

Illustration of Warp Record .... 20 

IV. COMPUTING THE COST OF WEAVING . 21 

Cost per Yard 26 

Price to Sell 27 

How to Estimate the Cost to Produce . . 27 

Illustration: Estimating the Cost . . 31 

V. PAY ROLL 32 

Summary of Pay Rolls 32 

Winding and Quilling 33 

Warping 33 

Twisting 34 

Weaving 34 

Picking 35 

VI. INVENTORIES 36 

Raw Material 36 

Goods on the Looms 37 

Finishing Departments 39 

Taking Inventory of Raw Material . . 39 

Taking Inventory of Goods on Looms . 40 

Summary of Inventory 41 

vii 



Vlll TABLE OF CONTENTS 

PAGE 

VII. RECORDS 42 

Finished Goods 42 

Purchase Journal 43 

General Ledger 44 

Statement Made from Ledger .... 45 

Weight on General Ledger 45 

Final Summary 46 

Raw Silk 48 

Yarn 48 

Raw Silk at Throwsters 48 

Silk at Dyers 49 

Stock Cards 49 

Silk Used for Warp 49 

Warp Blanket 49 

Loom Book 50 

Cut Ticket 50 

Operatives Pay Book 50 

Verifying Piece Work 51 

Average the Labor Costs 51 

Jacquard Looms 52 

Piece Dyeing 52 

VIII. PROVING THE RESULTS 54 

IX. THROWING MILL 57 

Statistical Record 59 

Production 59 

Fractional Pay Rolls 60 

Raw Silk 61 

Power 63 

Distribution of Power Expense ... 63 

Light 64 

Rent 64 

Distribution of Rent Expense .... 65 

Mill Expenses and Supplies .... 65 

Depreciation 65 

Exhibit A. Warp Record 12 

Exhibit B. Figuring Cost of Warps . . 15 

Exhibit C. Figuring Cost of Weaving . . 22 

Exhibit D. Figuring Cost of Throwing . 68 



SILK MILL COSTS 



SILK MILL COSTS 

I. OUTLINE OF SYSTEM 
" Progress never comes by revolution, but by evolution." 

To install a cost system in a silk mill does 

1 not necessitate a revolution. By long expe- 
rience, each mill has developed methods that 
are peculiarly suited to the conditions exist- 
ing in it, and any attempt to install a system 
simply because it was successful elsewhere, is 
sure to come to grief, if you endeavor to make 
the mill conform to the system, instead of 
making the system conform to the mill. Rad- 

2 ical changes should be regarded suspiciously, 
and carefully considered before attempting to 
put them in operation, for it should only be 
necessary to arrange the records to meet the 

3 needs of the system. If you keep this idea 
in mind, and endeavor to adjust your methods 
so as to get the required information, the 
results will be more satisfactory than if you 
rush ahead and make unnecessary changes. 

4 In the operation of this system, first com- 
pute the cost of preparing the material. This 
includes every expense until the material is 

used for warp or filling. Next, figure the 

3 



4 SILK MILL COSTS 

cost of making all the warps that were made 

5 during the period. (In this illustration, I 
take the period of three months from Jan- 
uary 1st to April 1st, 1900.) After deter- 
mining the cost of making the warps, the 
quantity used is obtained from the warp 
records (Reference No. 117), and the cost of 
making the various kinds and widths of cloth, 
is computed. This is the mill cost, and the 
total mill cost of all the goods, according to 
the cost sheet, should equal the total expend- 
iture shown in the statement made from the 
trial balance. A rate is added to the cost of 
each for finishing, and the result is the cost 
to produce. The price to sell is based upon 
this cost (See Reference No. 218). 

6 Closing Periods 

The cost system should be closed every 
quarter, or in shorter periods if desired. If 
only the inventories of raw material and 
goods on the looms are taken, it will be a very 
simple matter, even in the largest mills, 

7 when they operate upon this plan. It is 
never necessary to close down in order to take 
the inventory required to figure the cost. 
The annual inventory can be taken in the 
customary way, if desirable. The ledger 



SILK MILL COSTS 5 

accounts can be closed by charging the 
cost of the production to the merchandise 
account. 

Synopsis 

8 First, Figure the cost of preparing the 
material ; 

9 Second, Figure the cost of making the 
warps; 

10 Third, Figure the cost of weaving the cloth; 

11 Fourth, Add the cost of finishing. 

12 After the cost has been computed, a per- 
centage should be added for mill expenses. 
This will give the mill cost. To the mill 
cost add the cost of finishing, for the cost 

13 to produce. Consider the percentage of the 
sales necessary to provide for selling expenses 
and for profit; deduct that percentage from 
100 to determine the percentage of this cost 

14 to the sales. To obtain the price to sell, in 
order to realize the desired profit, multiply 
the cost to produce by 100 and divide by the 
percentage of the cost to the sales. (See 
Reference Nos. 218 and 154.) 

15 The cost of preparing the material 
includes : 

16 (a) Value of silk used, 

17 (b) Value of yarn used, 



18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
36 
36 
37 



i SILK MILL COSTS 

c) Cost of throwing, 

d) Cost of dyeing. 

The cost of making the warps includes 

a) Value of material used, 

b) Cost of throwing organzine, 

c) Cost of dyeing material used, 

d) Cost of winding material used, 

e) Cost of warping and beaming. 
The cost of weaving includes: 

a) Value of warp used, 

b) Cost of twisting on the looms, 

c) Cost of filling required, 

d) Cost of dyeing the filling, 

e) Cost of winding the filling, 
(/) Cost of weaving, 

g) Cost of picking, 
h) Provisions for mill expenses. 
The added cost of finishing includes: 

a) Piece dyeing, 

b) Finishing. 



Requirements of the System 

39 Take Inventory (Reference No. 250) 

An inventory must be taken every three 
months in order to determine positively the 
exact quantities of material actually con- 
sumed during the period. 



SILK MILL COSTS 7 

40 Warp Record (Exhibit A) 

A record must be kept of the warps made 
during the period, and the following infor- 
mation obtained regarding each quality — 
pattern — width. 

41 (a) Yards of warp made, 

42 (6) Material used or required, 

43 (c) Yardage off the looms, 

44 (d) Finished yardage. 

46 Pay Rolls 

The weekly pay rolls must be analyzed 
in order to keep the labor costs under con- 
trol, and supply the cost of each operation. 

46 Production Records 

The results obtained in each department 
must be recorded in order to figure the cost 
of each operation. 

47 General Books 

The general books must be arranged so 
that a positive account of the material used 
will be available, without examining the 
entire records. The accounts must be clas- 
sified so that a statement similar to Refer- 
ence No. 369 can be prepared by arranging 



8 SILK MILL COSTS 

the items of the trial balance, without 
making adjustments. 

48 Order of Procedure — To Commence the 

System 

49 (1) Take inventory, 

60 (2) Prepare warp sheets for new quarter. 
Execute a warp sheet for each quality — 
pattern — width ; and enter on the warp 
sheets the parts of warps included in the 
inventory. To illustrate the manner of pre- 
paring the warp sheets see entries (Refer- 
ence Numbers 121, 122, 123, and 124). 

61 They are for fractional warps, of this qual- 
ity — pattern — width, that were included 
in the inventory of January 1, 1900. (See 
Reference No. 105.) 

62 (3) Make an analysis of pay rolls. (See 
Reference No. 220.) 

63 (4) Instruct the foremen of the depart- 
ments regarding the preparation of the 
following records: 

64 Winding: Wages and weights of winding 
organzine and tram, and quilling tram. (See 

55 Reference No. 234.) 

56 Warping: Time required for each quality 
67 — pattern — width. (See Reference No. 

236.) 



SILK MILL COSTS 9 

68 Twisting: Time required for each qual- 

59 ity — pattern — width. (See Reference No. 
240.) 

60 (5) Arrange voucher journal. (See Ref- 
erence No. 342.) 



II. WARP RECORD 

61 Description of Warp Record (Exhibit A) 

The most important record of the sys- 
tem is this warp record. It should show all 
the details, of each quality — pattern — 
width. One of these forms should be exe- 
cuted for each quality — pattern — width. 

62 (1) The name of the fabric; (2) The char- 
acter of the harness to be used in weaving; 
(3) The quality number; (4) The pattern 
number; (5) The width of the goods to be 
woven; (6) The quarter of the year during 
which the warps were made; (7) The kind 

63 of material used for warp; (8) The dye of 
the material used for warp; (9) The quan- 
tity of material computed to be required 
to make the yards of warp, No. 10; (11) 
The character of the filling to be used in 

64 weaving the fabric; (12) The dye of the 
filling to be used; (13) The quantity of fill- 
ing computed to be required to weave the 
yards No. 14; (15) The picks per inch of 
the fabric; (16) The reed used; (17) The 

10 



SILK MILL COSTS II 

65 total number of ends in each warp; (18) In 
this column the numbers of the warps are 
listed. First, the fractional warps from the 
inventory, then draw a line across the form 
(see Reference No. 124). Second, list the new 
warps as they are made. (19) In this col- 
umn, opposite each warp number, insert 

66 the length of the warp; (20) In this col- 
umn, opposite each warp number, insert 

67 the weight of the warp; (21) In this col- 
umn, opposite each warp number, insert 
the total yards of cloth cut from each warp, 
(when it is completed) . At inventory taking 
insert the total yards of cuts made from 

68 each warp up to date; (22) In this column, 
opposite each warp number, insert the total 
weight of the cuts, entered in column No. 
21; (23) These columns are only used when 

69 taking inventory; (24) In this column 
enter the balance of the warp still on the 

70 loom (whether it is woven on the loom or 

71 not); (25) In this column enter opposite 
each warp number the yardage woven on 
the loom. This is required in order to 
figure the value of the filling in the yardage 
woven on the loom. 

72 If the goods differ in quality, pattern, or 
width, a record should be made for each. 



12 



SILK MILL COSTS 



EXHIBIT A. WARP RECORD. 



Quality No.- 
Pattern No. 
-Width 



-(3)- 
-(4)- 



-Inches 



Name of Texture (1) Width (5)- 

Style of Harness (2) Quarter (6) 

Warp (7) Dyed (8) Requires (9) for (10) Yards 

Filling (11) Dyed (12) Requires (13)— for— (14) Yards 



Picks per inch (15) Reed (16) Total ends- 



-(17)- 



(18) 


(19) 


(20) 


(21) 


(22) 


(23) 

When taking Inventory 




Length 


Weight 


Yards 


Weight 




Numbers 






of the 


of 


of 


Off 


Off 


(24) 


(25) 


Warps 


Warps 


Warps 


Looms 


Looms 


Balance 
of Warp 


Woven on 
the Looms 

















SILK MILL COSTS 13 

To illustrate: If quality number 900 is made 
up in patterns 114 and 115, 2.24 inches and 
36 inches wide, four records should be made, 
namely : 

73 (1) Quality No. 900, Pattern No. 114, Width 36 inches. 

74 (2) Quality No. 900, Pattern No. 114, Width 2.24 inches. 

75 (3) Quality No. 900, Pattern No. 115, Width 36 inches. 

76 (4) Quality No. 900, Pattern No. 115, Width 2.24 inches. 

77 If shooters are run across, or Jacquard 
harness used, the records for weaving them 
should not be confused with the records 
of plain goods. 



III. COMPUTING THE COST OF 
WARPS 

79 Exhibit B, Summary of Warps 

80 This form is a summary of the warps 
made during the quarter. Columns Nos. 
1, 2, and 3 should show the quality — pat- 
tern — width of each fabric. 

81 Column No. 4, Warps Made 

The total yards of warp that were made 

82 for each fabric should be obtained from 
the form Exhibit A, Warp Record. An 
illustration of the results shown, at the end 
of the quarter, on the warp record for No. 
900-1 15-36" is presented at Reference No. 

83 119. The first items Reference Nos. 121, 
122, 123, and 124 are not considered in 
compiling this exhibit, for they were frac- 
tional warps included in the inventory at 
the beginning of the period. (See Refer- 
ence No. 99.) 

84 Column No. 5, Material Used 

85 The charge for material should be based 
upon the actual consumption of material 

14 



SILK MILL COSTS 



15 



^^ 


1 M 00 


co 


f~ 


o 


t^ 


CO 






<N 


i> 


CO 


i-H 


O 


°°. 1 1 


1 


1 


*H 


► co 3 « 


t>I 


00 


t>^ 


CO 


CN 1 1 


1 


1 


W 


c3 


CN 


I-t 


CO 


l-H 


CN 










CO 


o 


00 


CO 


CN 


CN 








CN 


00 


CN 


co 


CN 


os 






















^1 


08 to 

o o 
HO 


as 
»o 

CO 
CN 


co 

co 

00 

rH 


l-H 

CO 

»-H 
l-H 


CO 

»o 

i-H 


§ 1 1 

CO 


d 

OS 
CO 

co 






■ . ^ 


i—( 


o 


00 


co 


CN 


t» 




© 


o o -S 


OS 


00 


co 

d 


d 


d | | 


q 


CO 


*H 


>7 h II 


i-H 


l-H 


OS 


i-H 


iO * ' 


o 

CO 




1 


iO 


o 


o 


o 


o 


»o 






a 


CN 


q 


t>- 


00 


N 


OS 






t- bfl 










- 




lO 


OS 


=3 a 


d 


t^ 


d 


i-H 


'S 


CO 


C* 




£" 


»o 


iO 


00 
CN 


CN 

CO 


»o ' 

i-H 


00 




■ 


O 


o 


O 


o 


o 


o 




00 


.5 a 


oo 
d 


q 

CN 


CN 

d 


q 

d 


3 1 1 


d 


^ 
« 




£' M 


-k 


CO 


os 


>o 


CN ' 


TH 








l-H 


CN 


rH 


co 






Eti 


o 


o 


O 


o 


o 


O 






.9 


q 


o 


o 


o 


»o 


IQ 


, — N 


^ 


'5 


CN 


© 


00 


d 


CN 1 1 


CN 


eo 


>> 


O 


00 


00 


CO 


00 


l-H 


CN 




Q 


i—i 




1* 


OS 


CO 


o 

CN 






■ 


o 


o 


o 


o 


o 


O 




/ ^~ s 


b m 


o 


o 


q 


o 


o 


q 


^-^ 


CO 


CO 


© 


Tji 


d 


00 1 1 


CO 


CN 




-o •" 

H 


o 


■^ 


CO 


CN 


i-H 


■<^ 


CN 




co 


CN 


Tt< 


OS 


OS 


00 










i-H 


i-H 




•* 










o 


O 


O 


o 


o 


o 
o 
d 

OS 
CN 








3 


o 


o 


q 


o 


q 


, — ^ 






co 


d 


•* 


d 


d , , 


^-H 








CO 


Tt< 


00 


00 


iO 


CN 




T3 


"d 


00 


■<* 


i> 


CO 


CO 1 • 








9 


|> 


l-H 


T— 1 


CO 


© 


>o 


00 






03 










t-H 




CN 






















io 


."c3 

"G 


© 


o 

CO 


o 

CO 


o 

q 


o 


o 

"* 1 1 


I 


■ 








CO 


co 


CO 


CO 


co 1 | 


1 


1 




S3 




















a 


















+3 






















o 


o 


o 


o 


<=> 1 1 


o 


,. — ^ 






1—1 


o 


*# 


o 


CO 


CO 


O 






'S 


>o 


•* 


■* 


CN 


iO 1 ' 


o 


CN 






£ 






CN 


co 


rH 


00 






KM 


















° a © 


o 


o 


O 


o 


o 


o 
o 
q 






U h fl 


o 


o 


o 


o 


o 




^ 


T3 s3 s3 


iO 


q 


W5 


© 


CO 


o» 




S££ 
{* 


00 


d 


d 

CO 


d 

00 


d 1 ' 

CO 


d 

rH 


r-t 




J3 


















■+3 






■"# 










co 


T> 


CO 


Tjj 


CN 


CO 


*- 1 1 


1 




w 


S 


CO 


CN 


CN 


CO 


CN 1 1 


1 




cn 


Ph -w 


1— 1 

l-H 


i-H 


rH 

i-H 


iO 
i-H 


CO , , 


1 


/ - N 


i 


o 


© 


o 


o 


2 i i 






iH 


3 .■£ 


o 


o 


o 


o 


o 








os 


OS 


OS 


00 


t> ■ ' 










eo 


■<* 


IO 


CO 


t» 


as 








*4 


iH 


iH 


tH 


T-i 


iH 

























16 SILK MILL COSTS 

used. If that is an unknown quantity, 
the material required (see Exhibit A, Nos. 
7, 8, 9, and 10) should be used as a basis 

86 for determining the quantity. If the quan- 
tity used is based upon the required amount, 
prove the total weight No. 20 (with the 
ledger) before figuring the value of the 
material used for warps. 

87 Silk, Schappe, and Yarn for Warp 

88 When silk, schappe, and yarn are used 
for making warps, the form Exhibit A 
should provide a column like No. 5 for each. 

89 Column No. 6, Throwing 

90 Figure the cost of throwing the organ- 
zine entered in column No. 5 at the cost 
per pound paid to the throwster. 

91 Column No. 7, Dyeing 

Figure the cost of dyeing the material 
entered in column No. 5, at the cost per 
pound paid to the dyer. 

92 Column No. 8, Winding 

Figure the cost of winding the material 
entered in column No. 5, at the average 
cost of winding. 



SILK MILL COSTS 17 

93 Column No. 9, Warping 

Figure the cost of warping at the labor 
cost of warping the warps for each fabric, 
determined as illustrated, Reference No. 
236. 

94 Column No. 10, Nonproductive Labor 

Figure the nonproductive labor to be 
added for the labor charged in columns 
Nos. 8 and 9 of each fabric, and enter it in 
column No. 10. To determine the per- 
centage see Reference No. 232. 

95 Column No. 11, Total Cost 

Add the columns Nos. 5, 6, 7, 8, 9, and 10 
and enter the sum in column No. 11, which 
should be the total cost. 

96 Column No. 12, Average 

Divide the total cost, column No. 11, by 
the yards of warp made, column No. 4, for 
the average. Enter in column No. 12 the 
average per 100 yards of warp. 

7 Value of Warps Used 

When the inventory was taken on Janu- 
ary 1, 1900, the warp sheet, Exhibit A, for 
quality 900-115-36 " (see Reference No. 



18 SILK MILL COSTS 

119), had four warps on the looms that were 
not completed. Add the percentage for 
take-up to the yardage off looms and deduct 
the sum from the original length of the 
warp, the difference is considered the bal- 

98 ance of warp still on the loom. The yards 
woven on the loom is taken, but it does not 
reduce the yards of warp. The value of 
the filling, required to weave the yards 
woven on the loom, must be considered 
when preparing the inventory. 

99 Summary of all Warps on Hand January 1, 1900 

10? onn ~ J!! " Z, 60 ° yard8 ® $2810 = • 16 860 
inJ 1 ~ 114 " 24 101 y ards @ *19.00 = $ 19.19 

U3 Z " « ~ 2? 211 ° yards ® $3 ™° " • 780.70 
iS ™ ~ 36 100 ° yards @ $18 - 04 = • 180.37 

104 700 - 6 - 27" 817 yards @ $23.05 « $_188£2 

105 Total value of warps in inventory. . . . $1337 18 
(See Reference No. 107) . 



SILK MILL COSTS 19 

106 Summary of all Warps for the Quarter 

107 Inventory of warps January 1, 1900. ... $ 1337.18 
(See Reference No. 105) 

108 Warps made as per warp sheet $36979.92 

(See Exhibit B, Item 27) 

109 Total $38317.10 

110 Warps used as per weaving sheet .... $36539.59 
(See Exhibit C, Item 29) 

111 Inventory of warps, April 1, 1900 .... $ 1777.51 

112 Summary of Warps used During the Quarter 

113 Quality 900, Pattern 115, Width 36". 

Inventory, January 1, 1900, 600 yards . . $ 168.60 
(See Reference No. 100) 

114 Warps made during the quarter .... $ 2359.26 
(See Exhibit B, Item 13) 

115 Total $ 2527.86 

116 Warps, Inventory at closing $ 741.85 

(At average cost) 

117 Warps used during quarter $ 1786.01 

(See Exhibit C, Column 6) 



20 



SILK MILL COSTS 



Illustration of Warp Record 
119 Quality 900 - 115 - 36 " 



120 


Numbers 
of 


Yards 

of 
Warp 


Yards 


Record for Inventory- 




Warps 


off 
Looms 


Balance 


Woven 










of Warp 


on Loom 


121 


1170 


41 


39 






122 


1171 


152 


144 






123 


1174 


97 


92 






124 


1175 


310 


292 








600 






125 


1179 


500 


471 






126 


1180 


500 


470 






127 


1181 


500 


473 






128 


1194 


1000 


940 






129 


1195 


1000 


941 






130 


1196 


1000 


943 






131 


1210 


500 


471 






132 


1211 


1000 


408 


568 


40 


133 


1213 


1000 


370 


608 


37 


134 


1214 


1000 


— 


1000 


23 


135 


1215 


500 


— 


500 








8500 


6054 


2676 


100 




Warps in work: 


9100 yarc 


is. 


- 




Balanc 


:e on Looms 


: 2676 yarc 


is 





Quantity used: 6424 yards. 



IV. COMPUTING THE COST OF 
WEAVING 

137 Exhibit C, Summary of Weaving 

138 This is a summary of the cloth woven 
during the quarter. In column No. 1 enter 
the numbers identifying each fabric. (If 
desirable the colors may be separated from 
the blacks.) 

139 Column No. 2, Yardage Off the Looms 

The total yards of cloth made should be 
obtained from the warp record, Exhibit A. 
An illustration of the results shown on the 
warp record for No. 900-1 15-36" is pre- 
sented at Reference No. 119. The total 
yards off the looms, of each fabric, is charged 
in this column No. 2. 

140 Column No. 3, Warp Used 

The quantity of warp used should be ob- 
tained from the warp record, Reference No. 
119. From the total yards of warps charged 
to the warp record, deduct the balance 
still on the looms, the difference is the quan- 
tity of warp used. This should be entered 

in column No. 4. 

21 



22 



SILK MILL COSTS 



COMPUTING THE COST OF WEAVING 



(1) 


(2) 

Yard- 


(3) 


(7) 


(8) 


Texture 


age 
off the 
Looms 


Warp Used 


Twist- 
ing 


Filling Used 


(21) 900|115|36" 


6054 


(4) 

6424 


(5) 

27.76 


(6) 

1786.01 


38.54 


(9) 

256 


(10) 

3.25 


(ID 
832.00 


(22) 900|114|24" 


9001 


9501 


18.60 


1767.00 


38.25 


253 


3.25 


822.25 


(23) 900ill4|2.24" 


28819 


30608 


37.15 


11367.90 


305.80 


2450 


3.25 


8362.50 


(24) 800|15 |36" 


76513 


80101 


18.25 


14618.25 


240.30 


4005 


3.40 


13617.00 


(25) 700|6|27" 


29470 


30570 


22.90 


7000.43 


123.60 


2142 


3.10 


6640.20 


(26) 


149,857 


157,204 




36,539.59 


746.49 


9106 




30,273.95 




(27) 


(28) 




(29) 


(30) 


(31) 




(32) 



SILK MILL COSTS 



23 



THE TEXTURE EXHIBIT C 



(12) 


(13) 


(14) 


(15) 


(16) 


(17) 


(18) 


(19) 


(20) 


Throw- 
ing 
Tram 


Dyeing 


Wind- 
ing 


Weav- 
ing 


Picking 


General 

Non- 
produc- 
tive 
Labor 


Mill 
Expenses 


Total 
Mill Cost 


Aver- 
age 
per 

Yard 


76.80 


230.40 


115.20 


605.40 


60.54 


163.94 


586.32 


4495.15 


.7425 


75.90 


227.70 


117.00 


595.40 


89.31 


168.00 


585.12 


4485.93 


.4984 


735.00 


2205.00 


1102.50 


3836.27 


287.72 


1106.45 


4396 37 


33705.51 


1.1696 


1201.50 


2803.50 


1381.50 


3845.30 


769.06 


1247.23 


5958.54 


45682.18 


— 


642.60 


1071.00 


642.60 


1161.80 


290.45 


443.68 


2702.45 


20718.81 


— 


2731.80 


6537.60 


3358.80 


10,044.17 


1497.08 


3129.30 


14,228.80 


109,087.58 




(33) 


(34) 


(35) 


(36) 


(37) 


(38) 


(39) 


(40) 





24 SILK MILL COSTS 

141 Column No. 5, Rate for Warp 

The average cost of making each class 
of warps computed on the Summary of 
Warps, Exhibit B, No. 12, should be entered 
in this column No. 5. The value of the 
warps used should be obtained from the 
summary. (See Reference No. 117.) 

142 Column No. 7, Twisting 

The cost of twisting should be based 
upon the average paid for 100 yards twisted 
on the looms. (See Reference No. 240.) 

143 Column No. 8, Filling Used 

If the actual quantity of filling prepared 
for each fabric is not recorded, the charge 
for filling used should be based upon the 
requirements, entered on the warp records, 
Exhibit A, Nos. 13 and 14. Before extend- 
ing the cost of filling used, prove out the 
total weight, Exhibit C, No. 31, with the 
consumption shown by the ledger account 
and the inventories. 

144 Column No. 12, Throwing 

Charge in this column the cost of throw- 
ing the raw silk charged in column No. 9, 
as having been used for filling. 



SILK MILL COSTS 25 

145 Column No. 13, Dyeing 

Charge in this column the cost of dyeing 
the material charged in column No. 9, as 
having been used for filling. 

146 Column No. 14, Winding 

Charge in this column the cost of wind- 
ing and quilling the filling charged in col- 
umn No. 9. 

147 Column No. 15, Weaving 

Charge the cost of weaving, increased 
by the nonproductive labor in the weaving 
department. (See Reference No. 229.) 

148 Column No. 16, Picking 

Charge in this column the cost of pick- 
ing all the cloth, whether or not it is in the 
picking room. In making up the inven- 
tory, the cloth unpicked can be considered 
in order to prove the result. 

149 Column No. 17, Nonproductive Labor 

In this column charge a percentage of 
the totals, Nos. 30, 35, 36, and 37. This 
percentage should be based upon the per- 
centage of the nonproductive labor. (See 
Reference No. 232.) 



26 SILK MILL COSTS 

150 Column No. 18, Expense Burden 

In this column charge a percentage to 
provide for mill expenses. If the expense 
burden is distributed on the basis of labor 
and material, add together totals Nos. 29, 30, 
32, 33, 34, 35, 36, 37, and 38; and figure the 

151 percentage upon the sum. If the expense 
burden is distributed on the basis of pro- 
ductive labor, add totals Nos. 30, 35, 36, 
and 37; and figure the percentage upon the 
sum. 

152 Column No. 19, Total Cost 

Add the items charged against each fab- 
ric in the columns for the details of the 
cost, and enter the sum of each in this col- 
umn. The grand total, No. 40, should 
equal the cost of production shown by the 
ledger statement, Reference No. 378. 

153 Column No. 20, Average Cost per Yard 

Compute the average cost of each fabric 
by dividing the cost in column No. 19 
by the yardage in column No. 2. Enter 
the average cost of each fabric in column 

No. 20. 



SILK MILL COSTS 27 

154 Figuring price to sell, 900 - 115 - 36 ". 

155 Mill cost, exhibit C (20), 100 yards .... $74.25 

156 (If 100 yards off the loom will finish 105 yards.) 

157 Finishing 105 yards at $.08 8.40 



158 Total cost to produce 105 yards $ 82.65 

159 Providing 10% for selling expenses. 

160 Providing 10% for profit. 

161 100% - 20% = 80%. 

162 Multiply $82.65 by 100 and divide the result by 

80 for the price to sell, in order to provide 
10% for selling expenses, and make 10% 
profit $103.31 

163 Divide $103.31 by 105 yards for the price to sell 

per yard $ .98£ 

164 How to Estimate the Cost to Produce 

165 After the material required to make a 
given length of warp has been computed, 
and the filling required to weave the cloth 
is known, figure the cost of making the 
goods as shown in the illustration, Refer- 
ence No. 193. 

166 Reference No. 194. The cost of the mate- 
rial should include all expenditures made for 
the material, excepting labor. 

167 Reference No. 195. The quantity of raw 
silk required for the warp should be charged 
at the purchase price of the grade of silk 
to be used. 

168 Reference No. 196. The cost of throw- 

169 ing, the raw silk required for warp, should 



28 SILK MILL COSTS 

be charged at the actual cost of throwing 
the grade of silk to be used. 

170 Reference No. 197. The cost of dyeing, 
the weight of raw silk required for warp, 
should be charged at the cost shown by the 
dyer's invoice. 

171 Reference No. 198. The quantity of raw 
silk required for the filling should be charged 
at the purchase price of the grade of silk to 
be used. 

172 Reference No. 199. The cost of throw- 
ing, the raw silk required for filling, should 
be charged at the actual cost of throwing 
the grade of silk to be used. 

173 Reference No. 200. The cost of dyeing, 
the weight of raw silk required for filling, 
should be charged at the cost shown by the 
dyer's invoice. 

174 If yarn and schappe are used for warp or 
filling, the cost of each required, and the cost 
of dyeing each, should be shown separately. 

175 Reference No. 201. The cost of material 
entered here should include the entire cost 
of the material required. 

176 Reference No. 202. In figuring the cost 
for labor, use the rates shown by past expe- 
rience. These rates should be taken from 
the statistical record. Reference No. 220. 



SILK MILL COSTS 29 

177 Reference No. 203. Figure the cost of 
winding the dyed weight of the organzine 
or material required for warp, at the rate of 
winding that grade of material. 

178 Reference No. 204. Figure the cost of 
winding the dyed weight of the tram, 
or material required for filling, at the 
rate of winding and quilling that grade 
of material. 

179 If yarn and schappe are used, the cost 
of winding and quilling, or preparing it for 
use as filling, should be shown separately. 

180 Reference No. 205. Figure the cost of 
warping the length and ends of warp upon 
the basis used in figuring the warping on 
Exhibit B. 

181 Reference No. 206. Figure the cost of 
twisting the warp on the loom upon the basis 
used in figuring the twisting on Exhibit C. 

182 Reference No. 207. Figure the cost of 
weaving the estimated yardage off the loom 
at the rate to be paid plus the percentage 
required for nonproductive labor in the 
weave room. 

183 Reference No. 208. Figure the cost of 
picking the estimated yardage off the loom 
at the estimated cost of picking the grade 
of goods. 



30 SILK MILL COSTS 

184 Reference No. 209. Add the total of 
Reference Nos. 203, 204, 205, 206, 207, and 
208 to obtain the total productive labor. 

185 Reference No. 210. Figure the nonpro- 
ductive labor on Reference No. 209, using 
the percentage shown by the pay roll sum- 
mary, Reference No. 232. 

186 Reference No. 212. Figure the provision 
for mill expenses on the basis used in compil- 
ing Exhibit C. 

187 Reference No. 213. Add the total of 
Reference Nos. 201, 211, and 212, for the 
mill cost of the estimated yardage off the 
loom. 

188 Reference No. 214. Estimate the fin- 
ished yardage by considering the results 
obtained from similar grades. 

189 Reference No. 214. Figure the cost of 
finishing the estimated finished yardage at 
the rate to be paid for finishing. 

190 Reference No. 215. Add the total of 
Reference Nos. 213 and 214 for the cost 
of the goods finished. 

191 Reference No. 218. Figure the price to 
sell as shown. 

192 Reference No. 219. Divide the price to 
sell by the finished yardage for the average 
selling price per yard. 



SILK MILL COSTS 



31 



193 



ILLUSTRATION 

Estimating the Cost to Produce 



194 Figuring the Cost of Material 

195 Warp: Silk required. . .40 lbs. @ $3.50 $140.00 

196 Throwing 40 lbs. @ .60 24.00 

197 Dyeing 40 lbs. @ .20 8.00 

198 Filling: Silk required . .35 lbs. @ 3.00 105.00 

199 Throwing 35 lbs. @ .30 10.50 

200 Dyeing 35 lbs. @ .90 31.50 

201 Cost of Material $319.00 



202 Figuring the Cost of Labor 

203 Winding organzine 40 lbs. @ $.10 

204 Winding tram 70 lbs. @ .25 

205 Warping, 500 yards 

206 Twisting, 8970 ends 

207 Weaving, 478 yards @ .10 

208 Picking, 478 yards @ .01 

209 Total productive labor 

210 Nonproductive labor, 20% 

211 Cost of Labor 

212 Provision for mill exp. (40% of labor) . . 

213 Mill cost (478 yards off loom) 

214 Estimated 478 yds. will finish 482 yards 
Cost of finishing 482 yards . @, $ .08 

215 Cost of 482 yards finished 

216 Provision for selling expenses, 10% 

217 Provision for profit, 10% 

218 Price to sell ($502.54 X 100) + 80 = 

219 Price to sell, average per yard 



4.00 
17.50 

9.85 

2.37 

47.80 

4.78 

86.30 

17.26 



$103.56 
41.42 

$463.98 

38.56 
$502.54 



17 

1.30 



V. PAY ROLL 

220 Analysis of Pay Roll 

The pay rolls must be analyzed according 
to the departments of manufacture, and a 
record kept of the production of each classifi- 
cation. This can be accomplished by group- 
ing the operatives' names upon the pay-roll 
book, according to the classifications occupy- 
ing their time, and keeping a record (in the 

221 department) of the shifts made. Adjust 
the total of each department pay roll by 
deducting the amount chargeable to other 
classifications, and adding the wages for 
operatives shifted to the classification. The 
following summary of the pay roll for the 
quarter will show the classifications. 

222 Summary of Pay Roll 

223 Winding Organzine $ 831.22 

224 Winding Tram $1667.33 

225 Quilling Tram 1705.48 3372.81 

226 Warping 873.95 

227 Twisting 750.81 

228 Weaving, Productive $8859.85 

229 Weaving, Nonproductive 1184.32 10044.17 

230 Picking 1497.08 

231 Total $17370.04 

232 Nonproductive, 20% 3457.19 

233 Total of pay rolls $20827.23 

32 



SILK MILL COSTS 33 

234 Winding and Quilling 

A record must be kept of the silk deliv- 
ered to the winders, using the dyed weight. 
The cost of winding is based upon this rec- 
ord, which gives a questionable rate from 
week to week, but is accurate for the whole 
period when the inventories are considered. 

235 If piece rates are paid for winding, it is 
unnecessary to keep this record, for the 
quantities can be proven with the general 
control. 

236 Warping, Piece Rates 

237 Where warpers are paid for piece work 
the rates must be increased to provide for 
the nonproductive labor and a charge must 
be made for beaming. 

238 When warpers are day workers, a record 
must be kept of the time spent warping and 
beaming the warps for each quality-pattern- 
width. The record for each warper may be 
entered in a book; or a record may be kept 
of all the warpers showing the time occupied 
on each quality-pattern- width. 

239 The warp room summary must show the 
number of hours spent on each quality- 
pattern-width. Divide the total wages of 
the warping department, by the total pro- 



34 SILK MILL COSTS 

ductive hours; for the rate per hour for that 
quarter; and multiply it by the hours spent 
on each quality-pattern-width for the cost 
of warping each. To get the rate for 100 
yards, divide the cost of twisting each line 
by the hundreds of yards of each warp made. 

240 Twisting 

241 If the twisters are paid piece rates, smashes 
should be charged to nonproductive. The 
piece work rates for the quarter should be 
increased by a percentage to provide for the 
nonproductive labor. 

242 If the twisters are paid day wages, a rec- 
ord must be kept of the time occupied twist- 
ing each quality-pattern-width. The total 
pay roll of the twisters should be divided 
by the productive hours of the quarter, to 

243 obtain the rate per hour for twisting. Mul- 
tiply the rate by the hours spent on each 
line for the cost of twisting. To obtain 
the rate for 100 yards of each line, divide 
the wages by the hundreds of yards of each 
line actually twisted on the looms during 
the quarter. 

244 Weaving 

245 If piece rates are paid for weaving, the 
rates of each line must be increased by a 



SILK MILL COSTS 35 

percentage to provide for the weaving non- 
productive labor. 

246 If the weavers are paid part piece work 
rates and a few day workers, figure the 
wages of the day workers at the regular 
piece rates and add the excess to the non- 
productive labor. 

247 If the weavers are day workers a record 
must be kept of the wages expended for 
weaving each quality-pat tern- width. The 
total productive wages of each should be 
increased by a percentage for non-produc- 
tive labor in the weaving room. 

248 Picking 

249 If the pickers are paid day wages, a rec- 
ord should be kept of the time occupied 
picking each line, in order to determine the 
rate for each. 



VI. INVENTORIES 

260 Inventory of Material 

261 The inventory of material should be sep- 
arated into three divisions: (a) Raw mate- 
rial; (b) Goods on the looms; and (c) Goods 
in the finishing department. 

252 Inventory of Raw Material 

253 The inventory of raw material should in- 
clude all the raw silk, yarn, etc., in bales and 
cases; silk at the throwsters; stock at the 
dyers; in the store rooms, and in skeins, 
on spools, quills, cops, and frames, in all 
departments. 

264 In compiling this inventory, the value of 
each lot should be analyzed to show the cost 
of the raw stock, the cost of throwing, the 
cost of dyeing, and the cost of winding. 

266 When preparing the inventory of raw 
material, group the lots according to the 
following : 

256 Silk in Bales: Figure the cost of raw silk. 

257 Silk at Throwsters: Figure the cost of the 
silk. 

268 Silk at Dyers: Figure the cost of the silk, 
and throwing. 

36 



SILK MILL COSTS 37 

259 Yarn at Dyers: Figure the cost of the yarn. 

260 Silk on Spools: Figure the cost of the 
raw silk, throwing, dyeing, and winding. 

261 Tram on Quills: Figure the cost of the raw 
silk, throwing, dyeing, winding, and quilling. 

262 Yarn on Spools: Figure the cost of yarn, 
dyeing, and winding. 

263 Yarn on Quills: Figure the cost of yarn, 
dyeing, winding, and quilling. 

264 Inventory of Goods on the Looms 

265 The inventory of goods on the looms 
should include the value of the warps on 
the looms, the prorated cost of twisting the 
balance of warps on the looms, the value of 
the filling required to weave the yardage 
woven on the looms, the cost of throwing 
tram included in the filling, the cost of 
dyeing the filling, the cost of winding the 
filling, and a percentage for nonproductive 
labor. The total of the above should be 
the value of the goods on the looms. 

266 Figuring Inventory of Goods on Looms 

To figure the value of the goods on the 
looms, take the total yards of warp still on 
the looms, Exhibit A, Item 24, and the total 
yards woven on the looms, Exhibit A, No. 
25, of each fabric. Make a summary of 
warps on the looms (at the time of taking 



38 SILK MILL COSTS 

the inventory), on the form Exhibit C, and 
in the same manner as shown on Exhibit C. 

267 Column No. 1. List the fabrics the same 
as if the goods were completed. 

268 Column No. 2. In this column put the total 
yards of each fabric woven on the looms. 

269 Column No. 3. In this column enter the 
total yards of each kind of warp still on the 
looms, and figure the value of the warps 
(5) at the rates taken from Exhibit B. 

270 Column No. 7. In this column enter 
the prorated cost of twisting, the balance of 
the warps on the looms. 

271 Column No. 8. In this column enter the 
filling required to weave the yardage woven 
on the looms. (Column No. 2.) 

272 Column No. 12. In this column enter 
the cost of throwing tram entered as being 
used in column No. 9. 

273 Column No. 13. In this column enter 
the cost of dyeing the filling entered as 
having been used in column No. 9. 

274 Column No. 14. In this column enter the 
cost of winding the filling entered as having 
been used in column No. 9. 

276 Column No. 17. In this column enter 
the percentage that should be provided for 
nonproductive labor for totals Nos. 30 and 
35; twisting and winding. 



SILK MILL COSTS 39 

276 Column No. 19. In this column enter 
the total value of the goods, which will be 
the sum of the amounts entered in columns 
Nos. 6, 7, 11, 12, 13, 14, and 17. 

277 The grand total No. 40 should be the total 
value of the goods on the looms at the time 
of taking the inventory. 

278 Inventory of Finishing Departments 

279 The inventory of the finishing departments 
is not absolutely necessary in order to figure 
the costs. If it is convenient to take an in- 
ventory of this department, it should be done. 

280 The cost of picking the goods not picked 
will be a deduction from the picking wages, 
on Exhibit C. (The cost of weaving for 
the quarter.) 

281 Taking Inventory of Raw Material 

282 A convenient method of taking the inven- 
tory of the raw material is to print slips 
calling for the following information: 

283 (a) Date of inventory, 

284 (6) Number of material, 

285 (c) Descriptions of material, 

286 (d) How dyed, 

287 (e) Dyed weight, 

288 (/) Raw weight, and 

289 (g) How prepared (Bales, skeins, spools, 
quills, etc.). 



40 SILK MILL COSTS 

290 These slips should be made up in pads and 
during the days prior to inventory taking, 
the employees weighing the material should 
put slips upon all material, so that when the 
time comes for taking the inventory, every- 
thing in the mill will be marked. At the 
time appointed, each foreman should col- 
lect the slips in his department, and the 
inventory can be made up from the slips. 
The slips should be sorted according to 
classifications before listing. 

291 Taking Inventory of Goods on Looms 

292 A convenient method of taking the inven- 
tory of the goods on the looms, is to print 
slips calling for the following information: 

293 (a) Date of inventory, 

294 (b) Fabric on loom, 

295 (c) Quality-pattern-width, 

296 (d) Loom number, 

297 (e) Warp number, 

298 (/) Cuts made, 

299 (g) Yardage of cuts, 

300 (h) Take up, 

301 (i) Length of warp, 

302 (j) Balance of warp on loom, and 

303 (k) Yards woven on the loom. 

304 These slips should be executed by the 
weavers, just before closing, and they should 



SILK MILL COSTS 41 

be left on the looms. The taking the in- 
ventory would mean collecting the slips and 
verifying the slips, by comparing them with 
the warp records. 

305 Summary of Inventory 

306 When the inventory is completed a sum- 
mary should be made like the following: 

307 Inventory, January 1, 1900 

308 Raw Material: Organ., 10701 lbs. $37453.50 

309 Tram, 3210 lbs. . 9630.00 

310 Yarn, 8715 lbs. . 3486.00 

311 Throwing 963.00 

312 Dyeing 6660.37 

313 Winding 51.83 

314 Nonpro. labor. . . 10.32 

315 Total $58255.02 

316 Goods on Looms: Warps Ref. No. 107 $ 1337.18 

317 Filling 311.52 

318 Throwing 27.61 

319 Dyeing 69.10 

320 Wind'g & quill'g. 35.14 

321 Twisting 13.95 

322 Nonpro. labor. . . 9.28 

323 Total $ 1803.78 

324 Total Material and Labor $60058.80 

325 Finishing Departments: Picking Rm. $ 3605.11 

326 Finishers . . 4999.70 

327 Total $ 8604.81 

328 Total Inventory of Mill $68663.61 



VII. RECORDS 

329 Finished Goods 

330 If the finished yardage is not compiled 
on the warp record, a record of the finished 
yardage should be kept in some form in 
order to determine the percentage of in- 
crease or decrease on the finished goods. 
The following record is convenient, when a 
sheet is used for each quality-pat tern- width. 



331 

332 900 - 115 - 36" 



Finished Goods Book 



333 


Piece 

Numbers 


Finished 
Yards 


Mill 
Cut No. 


Yards 
Off Loom 


334 


Brought 













Forward 


5846 


— 


5792 


335 


17612 


51 


4127 


52 


336 


17613 


53 


4386 


54 


337 


17614 


50 


4092 


51 


338 


17801 


52 


4095 


53 


339 


17805 


51 


4788 


52 


340 


6103 


6054 



341 Finishing 

When the goods are finished, the finishing 
department should be operated as a sep- 
arate institution, and the cost per yard 



42 



SILK MILL COSTS 43 

determined according to the conditions and 
requirements of the business. 

342 Purchase Journal 

Arrange the purchase journal so that it 
will provide columns for the following rec- 
ords of material purchased: 

343 (a) Organzine, Weight. 

344 (6) Organzine, Value. 

345 (c) Tram, Weight. 

346 (d) Tram, Value. 

347 (e) Yarn, Weight. 

348 (/) Yarn, Value. 

349 (h) Schappe, Weight. 

350 (i) Schappe, Value. 

351 (j) Throwing Organzine, Weight. 

352 (k) Throwing Organzine, Cost. 

353 (I) Throwing Tram, Weight. 

354 (m) Throwing Tram, Cost. 

355 (n) Dyeing Organzine, Weight. 

356 (o) Dyeing Organzine, Cost. 

357 (p) Dyeing Tram, Weight. 

358 (q) Dyeing Tram, Cost. 

359 (r) Dyeing Yarn, Weight. 

360 (s) Dyeing Yarn, Cost. 

361 (t) Piece Dyeing. 

362 The best way to accomplish this is to have 
a material column upon the old purchase 



44 SILK MILL COSTS 

journal, and keep a sub-analysis book for 
the material, with the columns shown as 
above. 

363 General Ledger 

364 The general ledger should have the 
accounts planned so that the statement of 
the mill, for the quarter, can be made by 
simply arranging the balances of the ac- 

365 counts, entered on the trial balance. The 
final statement of the mill should be pre- 
pared like the illustration shown, Reference 
No. 369. 

366 To determine the percentage of the sell- 
ing expenses to the sales, divide the expenses, 
Reference No. 385, by the sales, Reference 
No. 387. 

367 If the distribution of mill expenses is to be 
based upon the labor cost, divide the mill 
expenses, Reference No. 375, by the labor, 
Reference No. 374, to determine the per- 
centage to be added for mill expenses. 

368 If the distribution of mill expenses is to 
be based upon the cost of labor and mate- 
rial, divide the mill expenses by the differ- 
ence between the cost of the production, 
Reference No. 380, and the mill expenses, 
Reference No. 375, to determine the 



SILK MILL COSTS 45 

percentage to be added to the total cost for 
mill expenses. 

369 Statement Made from Ledger Accounts 

370 Mill Inventory, January 1, 1900 $ 68663.61 

371 Purchase of Material 58401.22 

372 Throwing Account 9411.80 

373 Dyeing Account (Not Piece Dyeing) 5892.50 

374 Pay Roll for the quarter 20827.23 

375 Mill Expenses 14228.80 

376 Total . . -. $177425.16 

377 Mill Inventory April 1, 1900 68337.58 

378 Cost of Production $109087.58 

379 Finishing Account (Includes Piece Dyeing) .... 8401 .30 

380 Total Mill Cost $117488.88 

381 Inventory of Finished Goods, January 1 201807.60 

382 Total $319296.48 

383 Inventory of Finished Goods, April 1 180742.30 

384 Cost of Sales $138554.18 

385 Selling Expenses 13682.71 

386 Profit for the quarter 27932.85 

387 Net Sales for the quarter $180169.74 

388 Weights on General Ledger 

The general ledger accounts should show 
the weights of silk, yarn, and schappe; and 
the weights of throwing and dyeing. It 
will facilitate matters when you desire to 
prove the cost records, and also provide a 
control of the material used. 



46 SILK MILL COSTS 

389 Final Summary 

If a final summary is made of the results, 
the various classifications can be verified in 
detail. To make this summary, add to the 
analysis of the inventory at the beginning, 
the purchases of each classification, the 
analysis of the pay roll for the quarter, and 
the total expenses. Deduct the analysis 
of the cost of making the warps from the 
items of the classifications. Add the total 
cost of warps to the inventory of warps at 
the beginning and deduct the value of warps 
used. Deduct the items of the analysis 
of the cost of weaving from the various 
classifications, and the balance of each should 
be the inventory at the end of the period. 
(For illustration, see Reference Nos. 414 
and 418.) 



SILK MILL COSTS 



47 



390 



Final Summary of Manufacturing Account 



391 



392 Organzine . . 

393 Tram 

394 Yarn 

395 Throwing 
Organzine . . 

396 Throwing 
Tram 

397 Dyeing 
Organzine . . 

398 Dyeing Tram 

399 Twisting . . . 

400 Winding 
Organzine . . 

401 Winding 
Tram 

402 Warps 

403 Warping . . . 

404 Weaving . . . 

405 Picking 

406 Nonproduc- 

tive 

407 Mill Expense 



408 Totals 



Inventory 
January 1 



37,453.50 
9,940.52 
3,486.00 

566.31 

424.30 

1,873.95 

4,855.52 

13.95 

51.83 

35.14 
1,338.18 



19.60 



60,058.80 



Purchases 
Wages and 
Expenses 



27,657.16 
30,744.06 



5,001.70 

4,410.10 

2,100.05 

3,792.45 

750.81 

831.22 

3,372.81 

873.95 

10,044.17 

1,497.08 

3,457.19 

14,228.80 



108,761.55 



Cost of 

Making 

Warps 

Exhibit B 



28,295.00 



4,848.00 



2,012.50 



646.40 



873.95 



304.07 



Cost of 
Weaving 
Exhibit C 



30,273.95 



2,731.80 



6,537.60 
746.49 



3,358.80 
36,539.59 

10,044.17 
1,497.08 

3,129.30 
14,228 80 



109,087.58 



Inventory 
April 1 



36,815.66 

10,410.63 

3,486.00 

720.01 

2,102.60 

1,961.50 

2,110.37 

18.27 

236.65 

49.15 

1,778.51 



43.42 



59,732.77 



(415) (417) 

409 Charged warps 36,979.92 

(416) 

410 Inventory, January 1 60,058.80 

411 Purchases, etc. See Reference No. 415 108,761.55 

412 Total 168,820.35 

413 Cost of Product. See Reference No. 417 109,087.58 

414 Difference and Inv't'y Apr. 1. SeeRef. No. 418 59,732.77 



(418) 



48 SILK MILL COSTS 

419 Raw Silk 

420 All calculations should be based upon 
raw silk. This does not mean that records 
should not be kept of dyed weights. The 
dyed weight is very essential in keeping a 
proper control upon the consumption. 

421 If it is not possible to keep a record of 
the silk prepared and used for each line, 
the amount required can be used in figuring 
the cost. If the amount required does not 
equal the consumption shown by the ledger 
account, it must be increased or decreased 
proportionately, in order to make it equal 
the amount of raw silk actually used. 

422 Yarn 

The quantity of yarn used is generally 
based upon the amount computed to be 
required to produce the cloth. If the quan- 
tity figured on the cost sheets exceeds the 
quantity actually consumed, the quantity 
charged against each grade of cloth must 
be reduced proportionately. 

423 Raw Silk Sent to Throwsters 

Letters ordering silk to the throwster can 
be arranged so that the order will be exe- 
cuted in duplicate, and the copy put in a 



SILK MILL COSTS 49 

binder, for a record of the silk at the 
throwsters; until the throwster's delivery is 
checked off, when the copies of the letters 
can be removed from the binder and filed 
permanently. 

424 Silk at Dyers 

Letters ordering silk dyeing can be 
arranged so that the order will be executed 
in duplicate, and a copy filed until the 
dyer's delivery is reported. 

425 Stock Cards 

Stock cards should be kept for material. 
There should be a card for each lot, and the 
record of deliveries should show the dis- 
position of the material, in a manner that 
can be checked up with the next succeeding 
record of the material. 

426 Silk Used for Warps 

A record can be made of the raw silk num- 
bers on the warp ticket, when the warp is 
made. This will facilitate matters when it 
is desirable to check up a particular lot of 
silk. 

427 Warp Blanket 

Where the employee is paid by the piece, 
a warp blanket can be used. It is per- 



50 SILK MILL COSTS 

forated and contains a loom ticket, warpers' 
ticket, beamers' ticket, and tickets for the 
cuts. The ticket for each cut has three 
parts: (1) weavers' ticket; (2) pickers' 
ticket; and (3) piece ticket. An arrange- 
ment of this character insures correct rec- 
ords because the numbers are printed upon 
the tickets. 

428 Loom Book 

A convenient method of keeping a record 
of the cuts is to have a weave book on each 
loom, and enter the cuts in the loom book 
after inspection; then return the book to 
the loom. When the last cut is made the 
total yards can be footed and entered upon 
the warp records. 

429 Cut Ticket 

It is sometimes convenient to combine 
the cut ticket, pickers' ticket, and piece 
ticket. Printing the numbers on the tickets 
insures against errors. 

430 Operatives' Pay Book 

When operatives are paid piece rates, 
each operative should have a pay book, 
and the piece ticket should be entered in 



SILK MILL COSTS 51 

it. The sum of the entries should be the 
pay of the operative. 

431 Verifying Piece Work 

When departments are paid by piece work, 
the tickets should be sent to the office and 
entered in a record kept of the work in each 
department. When this is done the total, 
entered in the book for the department, 
should equal the wages paid for the pro- 
ductive labor in the department. 

432 Average the Labor Costs 

When day wages are paid in operating 
departments, the average labor cost of each 
process, for each pay, should be made a 
matter of record. If this is done, the rec- 
ord of past performances will be an incen- 
tive to improvement, and also show what 
is possible under favorable conditions. In 
which case it is advisable to adopt every 
means of promoting the favorable conditions. 
In making this record, the book should be 
arranged so that each average is compared 
with the average of previous years. A 
convenient method is to provide a page for 
each process, with fifty-two lines on the 
page, and two columns for each year. In 



52 SILK MILL COSTS 

the first column, enter the quantity, and in 
the next column, enter the average, for one 
week. 

433 Jacquard Looms 

Two accounts should be kept on the 
ledger for harness and designs, if Jacquards 
are used. 

434 (a) Jacquard harness and designs, 

435 (6) Plain harness and designs. 

436 In which case a special column should be 
provided on the form Exhibit C, for " Har- 
ness and Designs," and a special distribu- 
tion made. The cost of Jacquards should 
be distributed over the fabrics made with 
Jacquards and the cost of plain harness 
distributed over the fabrics made with plain 
harness. 

437 Piece Dyeing 

Piece dyeing should not be confused with 
the other dyeing, because it is part of the 
cost of finishing and should be included in 
finishing account or kept in a separate 
account on the ledger. 

438 Dyeing 

When dyeing is done, the dye-house must 
be operated as a separate institution. The 



SILK MILL COSTS 53 

dyeing should be classified as (a) piece dye- 
ing, and (6) skein dyeing. A slip should 
be prepared so that the dyer can make a 
record of the dyestuffs used by kettles. The 
form should provide for a record of the 
material to be dyed and the dyestuffs used. 
The reports for kettles can be grouped by 
colors, styles, or in any manner that is 
desired, and the cost figured on a basis of 
pounds dyed. 



VIII. PROVING THE RESULTS 

Proof of Accuracy 

439 In order to prove the charges made for 
material and wages on the summary of the 
cost of making the warps, Exhibit B, and 
the summary of the cost of weaving, Exhibit 
C, consider the inventories for the begin- 
ning and end of the period, and reconcile 
the expenditures for the period with the 
charges made to the cost sheets. 

440 Classification of Materials 

The material can be classified as organ- 
zine, tram, yarn, and schappe, or as differ- 
ent grades of each, without making any 
more work, and each can be proven by con- 
sidering the inventories and the purchases. 
It is advisable to classify the material ac- 
cording to grades and prove out each; then 
any difference can be adjusted before clos- 
ing the summary of warps, Exhibit B, and 
the summary of weaving, Exhibit C. 

441 Throwing 

442 Inventory Throwing, Reference No. 311 $963.00 

443 Inventory T. Tram, Reference No. 318 27.61 

444 Throwing invoices as per Voucher Record, Ref- 

erence No. 372 9411.80 

445 Total $10402.41 

54 



SILK MILL COSTS 55 

Brought forward $10402.41 

446 Throwing Organ., Exhibit B, No. 22 $4848.00 

447 Throwing Tram, Exhibit C, No. 33 . . 2731.80 

448 Total charged to cost sheets 7579.80 

449 Balance should be inventory at closing $2822.61 

450 Dyeing 

451 Inventory, Raw Material, January 1, Reference 

No. 312 $6660.37 

452 Inventory, on looms, January 1, Reference No. 

319 69.10 

453 Dyeing invoices as per voucher register, Refer- 

ence No. 373 5892.50 

454 Total $12621.97 

455 Dyeing Organ., Exhibit B, No. 23 $2012.50 

456 Dyeing Filling, Exhibit C, No. 34 . . . 6537.60 

457 Total charged to cost sheets 8550.10 

458 Balance should be inventory at closing $4071.87 

459 Winding Organzine 

460 Inventory January 1, Reference No. 313 $51.83 

461 Pay roll for period, Reference No. 223 831.22 

462 Total $883.05 

463 Deduct, charges to cost sheet, see Exhibit B, 

No. 24 €46.40 

464 Balance should be inventory at closing $236.65 

465 Winding Filling 

466 Inventory January 1, Reference No. 320 $35.14 

467 Pay roll for period, Reference No. 225 3372.81 

468 Total $3407.95 

469 Deduct, charges to cost sheet, see Exhibit C, 

No. 35 3358.80 

470 Balance should be inventory at closing $49.15 



56 SILK MILL COSTS 

471 Twisting 

472 Inventory, January 1, Reference No. 321 $13.95 

473 Pay roll for period, Reference No. 227 750.81 

474 Total $764.76 

475 Deduct, charges to cost sheets, see Exhibit C, 

No. 30 746.49 

476 Balance should be inventory at closing $18.27 

477 Warping Wages 

478 The warping wages in the summary of the pay roll for 
the quarter, Reference No. 226, should equal the warping 
charged against Exhibit B, No. 25. 

479 Weaving Wages 

480 The weaving wages on the summary of the pay roll for 
the quarter, Reference No. 228, should equal the weaving 
charged against Exhibit C, No. 36. 

Final Proof 

481 The total of the summary of weaving, Exhibit C, No. 40, 
should equal the total mill cost shown on the statement 
made from the ledger, Reference No. 378. 



IX. THROWING 

482 Throwing Mill 

483 The throwing mill must in all cases be en- 
tirely separated from the weaving mill, and 
operated as a separate institution. This is a 
very simple proposition when the expense of 
power and rent are distributed upon the basis 
described, Reference Nos. 530 and 541. 

484 In this illustration there are only two clas- 
sifications: Organzine and Tram, but in 
actual practise the silk is classified accord- 
ing to the different grades of each. 

485 The cost system for the throwing mill 
consists mainly of arranging the pay rolls, 
and keeping a record of the weights accord- 
ing to the classifications of the production. 
As far as possible, the wages of the various 
classifications, in the various departments, 
are separated so that the cost of each classi- 
fication can be determined. The plan is 
not to compile the cost of each particular 
lot of silk, but to figure the cost of each 
operation or group of operations, where the 
latter is advisable. 

486 The idea is to figure the labor cost of 

each classification according to the entire 

57 



58 SILK MILL COSTS 

production, of that classification for the 
quarter, and thus afford a means of figuring 
the cost of the entire production of each 
classification, for the quarter. 

487 The cost for a pay roll may be inaccu- 
rate, but when the inventories are consid- 
ered, the costs will be adjusted by the law 
of averages. 

488 Preparing the Pay Rolls 

The pay rolls should be prepared by 
grouping the employees according to the 
classifications of the work occupying their 
time. When the foreman shifts an opera- 
tive from one classification to another, he 
should make a record of the shift. The 
shifts are reported to the office, and when 
the pay roll is made up for that period, the 
total pay roll for each classification is deter- 
mined by footing the operatives grouped 
under the classification. Allowances should 
then be made for the shifts. The summary 
of the pay roll should then be made, and 
entered in the statistical record, Reference 
Nos. 507, 508, and 509. 

489 The pay of employees operating frames 
of different classifications should be divided 
among the classifications. If half the frames 



SILK MTLL COSTS 59 

are one classification and the other half 
another, half the pay should be charged 
against each. 

490 Statistical Record 

491 The statistical record should provide col- 
umns for the following: 

492 (a) Spinning Organzine, 

493 (b) Spinning Tram, 

494 (c) Doubling Organzine, 

495 (d) Doubling Tram, 

496 (e) Reel Mills, Organzine, 

497 (0 Reel Mills, Tram, 

498 (g) Power Reels, Organzine, 

499 (h) Power Reels, Tram, 

600 (i) Lacing Organ and Tram, 

601 (j) Special Operations (Winding on 
tubes, etc.), 

602 (Jc) Nonproductive Labor, 

603 (I) Production of Organzine, 

504 (m) Production of Tram. 

505 This classification is simply shown to 
illustrate the plan of operation; you must 
make the classifications suitable to your mill. 

606 Production 

607 The weights of the production should be 
computed for the same period as the pay 
roll, and entered on the statistical record. 



60 SILK MILL COSTS 

508 If desired, the cost per pound for each 
classification can be figured for each pay 
roll and entered upon the statistical record. 
While the rates for each week will not be 
accurate, if the total production is consid- 
ered, by considering the inventories, the 
averages for the quarter are made accurate. 

509 At the end of each quarter the summaries 
of the pay rolls entered in the statistical 
record are footed and a summary made for 
the quarter. This summary is made on 
Exhibit D, and the cost of each classifica- 
tion is computed. 

510 Fractional Pay Rolls 

At the beginning and end of the quarter, 
the pay roll for the fractional part of the 
week should be prepared. The accrued pay 
roll for the fractional part of the week at 
the end of the expiring quarter should be 
compiled, and entered upon the statistical 
record with the pay rolls for the quarter. 
The entire pay roll for the first pay of the 
next quarter can then be compiled for the 
new quarter, and the fractional pay roll for 
the expired quarter deducted therefrom. The 
balance should be applied against the new 
quarter. 



SILK MILL COSTS 61 

611 Raw Silk 

The records of raw silk on the general 
books should be made in pounds and money 
value. The inventory of the raw silk at 
the beginning of the period should be con- 
sidered; to it should be added the pur- 
chases made during the quarter and from 
the sum, deduct the inventory at the end of 
the period. 

512 Waste 

A record of waste should be made, so that 
the waste of each class of silk will be known. 
The fact that a record is made of the waste, 
of each classification, will make the employees 
more careful and tend to reduce the loss. 

613 Lot Record 

A record should be made of each lot of 
silk, as it is passed in process. A conve- 
nient method is to provide a loose leaf book, 
and use a sheet for each lot. The heading 
of the sheet should show the details of the 
original lot. Two columns should be used 
for the numbers and weights of bales, and 
other columns provided, one for each bale. 
As the reports for bundles are received, the 
weight of each bundle should be entered in 
the column for the bale from which it was 



62 SILK MILL COSTS 

taken. A final summary should be made 
showing the total pounds thrown from each 
bale. 

514 When the lot is completed the sheet 
should be removed from the current binder 
and filed in a permanent binder for future 
reference. 

516 Taking the inventory will simply require 
a summary being made from the sheets in 
the current binder, and checking up the 
summary. 

516 Expense Burden 

The expenses of the throwing mill should 
be provided for, by adding to the labor 
cost a percentage for expenses. The per- 
centage can be based upon the pounds of 
production or the labor cost of each class 
of silk. The following items should be 
provided for under this heading: 

517 (a) Power and heat. (See Reference No. 
530.) 

518 (b) Light. (See Reference No. 539.) 

519 (c) Rent. (See Reference No. 540.) 

620 (d) Mill Expenses. (See Reference No. 
542.) 

621 (e) Depreciation. (See Reference No. 
544.) 



SILK MILL COSTS 63 

522 Power 

A power account should be kept in the 
general ledger in order to determine the 
actual cost of operating the power plant, 
and all expenditures for account of power 
and transmission should be charged against 
this account. It should be charged with 
the following in a steam plant: 

523 (a) Coal, Wood, and Fuel Oil or Gas, 

524 (b) Lubricants for power plant, 

525 (c) Packing, 

526 (d) Supplies for engine room, 

527 (e) Depreciation on power plant, 

528 (/) Proportion of rent, 

529 (g) Wages of power plant. 

530 Distribution of Power Expense 

The cost of power shown by the general 
ledger account should be distributed accord- 
ing to the required horse-power of the 
machinery in each department. If light is 
generated from the same power, the propor- 
tion required to operate the generators 
should be charged to the light account. 
The proportion chargeable to light should 
be based upon the hours the light plant 
was operated, during the quarter. 



64 silk mill costs 

631 Formula 

632 a = Light hours. 

533 b = Operating hours of plant. 

534 c = Horse-power required for dynamo. 
635 d = Power generated by power plant. 

536 e = Cost of power plant. 

537 / = Power expense chargeable to light. 

a c 
638 ^ x ^Xe=f 

539 Light 

A light account should be opened upon 
the general ledger, and in addition to its 
proportion of power expenses, all expenses 
of lighting, repairs, and maintenance of 
lamps, wiring, etc., should be charged against 
the light account. The expense of light 
should be distributed according to the lamps 
in each department. 

540 Rent 

Whether rent is paid or not, a rent account 
should be kept on the general ledger. If 
rent is paid, the amount paid should be 
distributed; if the property is a part of the 
business, the expense of rent should be 
computed. To compute the expense of rent, 



SILK MILL COSTS 65 

charge the rent account with interest at 
about five per cent, of the value of the plant, 
insurance upon the plant, depreciation on 
buildings, repairs, and renewals essential 
to their upkeep, and taxes. 

641 Distribution of Rent 

The rent expense should be distributed 
among the departments according to the 
floor space occupied by each department. 
This charge is very important and very 
often upsets the calculations made without 
considering rent. 

542 Mill Expenses and Supplies 

There should be two accounts for all mill 

543 expenses and supplies: (1) An account for 
all expenses of a general character, and 
(2) an account for special items such as cops, 
tubes, etc., for special lots, not applying 
against the general throwing. 

544 Depreciation on Machinery 

This account should provide an amount 
sufficient to cover the depreciation on the 
machinery. It should be reduced by the 
repairs and replacements that were 
expended to offset the depreciation. The 



66 SILK MILL COSTS 

depreciation on the machinery in each de- 
partment can be determined by making 
schedules of the machinery in each depart- 
ment in a book used only for that purpose. 
Every plant should keep a schedule of the 
machinery and preserve all invoices for 
purchases of machinery, contracts for build- 
ings, improvements, etc., in order to have 
some basis upon which an insurance claim 
can be made. This is imperative and of 
vital importance. Do not delay the matter, 
if not provided, because few plants obtain 
their proper, insurance when they neglect 
to make this provision. 

Exhibit D, Cost of Throwing 

In compiling the statement of the cost 
of throwing on Exhibit D, the expenditures 
of the throwing mill should all be grouped 
under five classifications: 

(1) Productive labor, 

(2) Nonproductive labor, 

(3) Power, 

(4) Rent, and 

(5) General Expenses. 

Exhibit D is provided with a column for 
all charges, and columns for the rates and 
totals of organzine and tram. If desired, the 



SILK MILL COSTS 67 

silk can be classified according to the differ- 
ent grades of each, and when so classified, a 
column similar to numbers 6 and 7 should 
be provided for each classification. The 
total production in pounds should be entered 
at (1) ; the production of organzine in pounds 
should be entered at (2); the production 
of tram in pounds should be entered at (3); 
the analysis of the pay rolls for the quarter 
should be entered in column (5) opposite the 
departmental classifications (13) to (21); 
the total (22) should be the total productive 
labor for the quarter; the pay roll for spin- 
ning organzine during the quarter was 
$436.98; this amount was divided by 20,506 
pounds (production of organzine) for the 
rate per pound for spinning organzine, 
$.02131 — the rate should be entered in col- 
umn (9), and the wages of the department 
should be entered in column (10). The 
same procedure applies to departments (14), 
(15), (16), (17), (18), (19), and (20). The 
pay roll of the lacing department (21) is 
chargeable to organzine and tram. It 
should be distributed against both on a 
per pound basis. The wages for the quar- 
ter, $289.93, were divided by the sum of 
20,506 pounds (production of organzine), and 



68 



SILK MILL COSTS 



COMPUTING THE COST OF THROWING. EXHIBIT D 





Production J$@ Q> 


(1) 
51,316 lbs. 


(2) 

20,506 lbs. 


(3) 

30,810 lbs. 




(4) 
Departments 


(5) 

Wages 
Paid 


(6) 

Organzine 


(7) 

Tram 




(9) 

Rate 
per lb. 


(10) 

Amount 


(11) 

Rate 

per lb. 


(12) 

Amount 


(13) 

(14) 
(15) 
(16) 
(17) 
(18) 
(19) 
(20) 
(21) 


Spinning, Tram 

Doubling, Tram 

Reel Mills, Organ 

Reel Mills, Tram 

Power Reels, Organ. . . 
Power Reels, Tram . . 
Lacing 


436.98 
539.79 
398.84 
414.39 
344.91 
434.42 
397.20 
395.91 
289.93 


.02131 
.01945 
.01082 
.01937 
.00565 


436.98 
398.84 
344.91 
397.20 
115.86 


.01752 

.01345 

.01410 

.01285 
.00505 


539.79 

414.39 

434.42 

395.91 
174.07 






(22) 
(23) 
(24) 


Total Direct Labor . . . 
Nonproductive, 50% . 
Power 


3652,37 

1826.04 

862.70 

1150.53 

2978.96 


.08260 
.04130 
.02051 
.02765 
.07434 


1693.79 
846.90 
420.58 
566.99 

1524.42 


.06357 
.03178 
.01435 
.01894 
.04721 


1958.58 
979.14 
442.12 


(25) 
(26) 


Rent 


583.54 
1454.54 


(27) 


Total Cost 


10,470.60 


.24640 


5052.68 


.17585 


5417.92 












(28) 


(29) 


(30) 


(31) 


(32) 



SILK MILL COSTS 69 

30,810 pounds (production of tram), for the 
rate per pound $.00565. Multiply 20,506 
pounds by $0,565 for the amount charge- 
able to organzine; and multiply 30,810 
pounds by $.00565 for the amount charge- 
able to tram; for lacing. The total labor 
(22) chargeable against organzine and tram 
should be increased by a percentage to pro- 
vide for nonproductive labor (23). The 
power account (24) should be distributed 
between the departments on a basis of 
required power (Reference 530). The rent 
account (25) should be distributed between 
the departments on a basis of floor space 
(Reference 541). The item of general ex- 
pense (26) must include every expenditure 
not provided for in numbers (1) to (4). It 
may be distributed upon a per pound basis, 
but the most satisfactory plan is to distrib- 
ute it between the departments on the pro- 
ductive labor basis. It is imperative that 
the latter plan be used when commission 
winding, or tube and cone winding, are 
done. The rate for each item of expense is 
determined by dividing them by the pro- 
duction of ^he department for the quar- 
ter. The sum (29) of the items in column 
(9) should be the rate for throwing organ- 



70 SILK MILL COSTS 

zine. The sum (30) of the items in column 
(10) should be the total of the expenditures 
chargeable to throwing organzine. The sum 
(31) of the items in column (11) should be the 
rate for throwing tram. The sum (32) of 
the items in column (12) should be the total 
of the expenditures chargeable to throwing 
tram. The total cost (28) should be the 
total expenditures for the quarter. 

Accounting Practice 

For further information on the subject 
of general accounting, and how to plan a 
general set of books, arrange the various 
accounts and rule the voucher register, the 
purchase journal, the general journal, and 
the cash book. (See Accounting Practice, 
by the same author, published by D. Apple- 
ton and Company, New York.) 

Yarn and Cloth Calculations 

No consideration has been given to this 
subject, because the matter has been treated 
very thoroughly in several other works. 
The writer recommends " Yarn and Cloth 
Calculations," by Thomas Yates, for sale 
by Lord and Nagle Company, of Boston, 
Massachusetts. 



1\JH 21 



^2 



